Jindal Steel shares gained 1.5% to ₹1,187.5 on Friday, August 28, following a significant analyst upgrade from Kotak Institutional Equities. The brokerage raised its target price by over 5% to ₹1,350 per share from its previous ₹1,280, indicating an upside potential of 15.4% from the previous close. This upgrade comes as the stock has already delivered strong performance, gaining 12.6% in the past month and rising 11.2% year-to-date. The positive sentiment reflects growing confidence in the company's positioning to benefit from the ongoing recovery in long steel prices.
According to Kotak Institutional Equities, Jindal Steel is best-placed to benefit from the ongoing recovery in long steel prices, with long products accounting for 50% of the volume mix, the highest among its peers. Long steel prices have risen 12% in the past month, providing favorable tailwinds for the company's business model. The brokerage noted that the company is transitioning from a build phase to a harvest phase, with key expansion projects nearing completion. Volume ramp-up and cost reduction initiatives are expected to drive strong earnings growth for Jindal Steel.
According to The Times of India, Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan, has recommended four top stocks to buy for August 25, 2026. The recommendations include Jindal Steel, Bajaj Auto, Engineers India, and NMDC, each with specific entry points, stop-loss levels, and target prices. The latest analyst upgrade from Kotak reinforces the positive outlook for Jindal Steel among institutional investors.
Market sentiment remains overwhelmingly positive for Jindal Steel, with 26 out of 34 analysts maintaining a 'buy' rating on the stock, while only 4 analysts have 'hold' and 'sell' recommendations respectively. The company's strategic positioning in long steel products, combined with the ongoing price recovery, has created a favorable investment environment. Kotak expects industry-leading performance with 17% volume compound annual growth rate (CAGR) and 31% earnings before interest tax depreciation and amortization (EBITDA) CAGR over FY26-29.
Jindal Steel reported its first quarter earnings last month, showing mixed results amid operational challenges. The company's consolidated net profit declined 43.6% to ₹844 crore from ₹1,496 crore in the previous year, while revenue increased 25.9% to ₹15,482 crore from ₹12,294 crore in the previous fiscal. However, EBITDA declined 11.5% to ₹2,660.4 crore from ₹3,004 crore in the first quarter last year, with EBITDA margin contracting to 17.18% from 24.43% in the year-ago period. Despite the quarterly challenges, the company's long-term prospects remain strong given its strategic positioning in the recovering steel market.
